Raleigh home prices surge, making homeownership unattainable for many

Is it possible to buy a home in Raleigh these days? According to new data from real estate brokerage Redfin, a homebuyer needs to earn more than $120,000 per year to afford a typical home in the city.

One strategy realtors suggest is to buy a townhome as a stepping stone to homeownership. However with sky-high mortgage rates, high prices, and low housing inventory, potential homebuyers are feeling discouraged.

Many people, like Willie Dale, are not interested in entering the housing market.

"As a single guy, there's no way I can imagine owning a home," Dale, a Raleigh resident, said.

The 34-year-old distiller moved to the capital city a year and a half ago and says renting is his best option.

"There's absolutely no way I can afford a down payment, afford a mortgage," Dale said.

Potential homebuyers say it feels harder than ever to afford a home.

See these new numbers from Redfin:

• Potential buyers should earn more than $120,000 a year to afford a median-priced home in Raleigh.
• A yearly income of $115,000 is needed to purchase a median-priced home in the United States.

That's a 15% increase from last year and a 50%+ increase from 2020.

"We have more people moving in than moving out, and that can create supply and demand issues," Realter Jason Kogok said.

Realtors Kogok and Julie Toy say there are strategies one must employ in navigating a hot housing market.

"Exploring the outskirts of Raleigh is a good alternative," Kogok said.

Julie Toy, a real estate agent at Coldwell Banker Advantage, says sometimes people will have to start off small.

"Sometimes a smaller home, a townhome," Toy said. "They continue to be a strong investment property for people."

Even with these tips, people like Dale say affording a home still feels out of reach.

"For the most part, a lot of my friends, we're still renting or a bunch of roommates just bouncing around," Dale said. "Just trying to figure it out."

As experts watch interest rates, they say they see more people with dual incomes try to afford homes.

WRAL News spoke with a man who closed on a home four months ago and said he had to go in with a roommate to make owning a home a reality.